There were some positive signs from the second quarter of 2016, but that sentiment by no means suggests it has been a booming market. Despite some slight increase in oil prices we have seen no positive effect on jobs in the oil patch, and the lack of government support means that confidence in the sector is still low which will result in less potential for investment. The Fort McMurray fires just “piled misery on” for an already beleaguered province, costing more jobs and lost productivity. We have not yet seen any stimulus in employment from promised government spending, although it is possible we just haven’t seen it. The Brexit decision caused ripples in the market, much debate and has had had no impact on employment yet. It may become an area of opportunity, but that remains to be seen. The weak dollar has helped some sectors such as the oil patch and the manufacturing sector, plus it is still business as usual for other sectors like the services sector, retail, banking, construction and telecommunications.

The unemployment rate at the end of the second quarter was improved to 6.8% from the Q1 rate of 7.1%. During the previous 12 months, Canada added 108,000 jobs which was 22,000 less than the 12 months up to last quarter. It is worth noting that the US continues to add jobs at a rate of 200,000 jobs every month, so we should expect to be adding 20,000 a month to keep pace (so 240,000 jobs in the last 12 months should be an expectation)!

The stock market continues to be volatile, and had an interesting ride with the Brexit announcement. Having said that, things have generally settled down in the markets. I focus on the TSX for this report and it ended Q2 at around 14,100 points which was up about 600 from the end of Q1.

As already mentioned the oil patch continues to take a pounding and we don’t anticipate much positive change before 2018. With oil starting to settle at around $50 a barrel we should see some activity but it will need to settle there for a while before companies act. Many companies are looking at divesting Canadian assets and investing in other geographies with less opposition and more government support. Many workers who migrated to the oil patch during the boom have left, and they will be difficult to replace when a recovery does happen.

The Canadian dollar in comparison to the US dollar is a long way from the days when we flirted with, and passed parity. At time of writing the dollar is worth about 76c US, which is just a couple of cents weaker than the end of Q1. The good news is that this helps the oil patch because they sell in US dollars and most costs are in Canadian dollars. It is also helpful to our manufacturing sector. Exporters will enjoy favorable pricing too; however, exports have been adversely affected by the economic woes of our trading partners like China.

The banking sector, while a big user of talent and one of the largest employers in Canada is also very careful. Recent initiatives have seen the banks rationalizing their workforce to ensure they are competitive. Toronto and Montreal continue to demand talent, just perhaps a little more restrained than in other times.

The telecommunications companies are another big employer in Canada and are also very cost conscious. While they demand the best talent in order to compete, they are also careful about keeping employment costs under control. Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce. The recent purchase of Wind by Shaw might increase competition and potentially open up opportunities should all of the regulatory approvals go through.

The US economy has been adding more than 200,000 jobs a month and while there were a couple of slower months in this last quarter, they made up for it in June. The result is that the US is still adding 200,000 jobs a month on average. The demand for skills in the US will lure talent from Canada which is good for the individuals but not so good for Canada in the long term.

The construction industry seems to be forever busy, to which anyone trying to get work done will attest. Despite the slowdown in the big jobs like the oil sands, there appears to be a constant demand caused by infrastructure upgrades in many of our cities and we have the promise of more such work funded by our growing national debt (was that my out loud voice?). Anecdotally I have seen numerous Alberta plated cars on job sites around the GTA, which supports the theory that many workers have come back from the oil patch and are finding work elsewhere.

The Liberal government has been in place for about nine months and are continuing to both spend and raise taxes. There are some expected government projects and infrastructure spending initiatives that should benefit the private sector. In addition, spending in some ministries will be reduced as others benefit from the new agenda. Some opportunities will be seen in sectors such as health, environment and education.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The latest score for the Index is 106 in June. This indicates a 3% month over month increase in demand for labor and a 5% year over year increase.

Here at Eagle the big impact on our business continues to be the oil patch, but also many clients are taking advantage of a tough economy to look at their cost base. This can lead to some layoffs and slower hiring patterns. Year-over-year the number of people applying for jobs has increased by about 3% and there was a 7% decrease since the last quarter. Demand from our clients was down 4% year-over-year, and also down 3.5% from last quarter. This suggests to us that the people affected by the layoffs are now active in their job searches. We also believe that demand is very patchy, with no sectors booming in demand for professionals.

More Specifically:

There is really very little change from my report last quarter. This is the one market in Canada that has a continual demand for talent. Toronto is the 5th largest city in North America with a population exceeding 6 million. The GTA (Greater Toronto Area) is home to the most head offices (almost 700) in Canada and most head office staff (around 75,000). Consequently it is also the hottest job market in Canada and generates about 60% of Eagle’s business. While it remains a busy market we have seen some impact from downsizing in large companies that has increased the availability of senior people in the market. Having said all that, if I were looking for work this is where I would like to be. The sectors that are always looking for people include the financial, insurance, government and telecommunications sectors in addition to the retail sector and the construction industry. There is also a fair amount of demand in the engineering and manufacturing space.

Again very little change from last quarter. Western Canada and more specifically Calgary as the “oil capital” of Canada, has taken the brunt of the hit from the drop in oil prices. There have been multiple rounds of layoffs, and more are projected, with the possibility that it may be 2018 before we see a recovery. When the big oil companies are hurting there is a trickle-down effect to all of the services companies that serve them and the local economy gets affected in retail and housing specifically. The NDP government has done nothing to help boost confidence in Alberta for investors. It should not be forgotten that both Saskatchewan and British Columbia have an oil sector too, and while they have been equally hit those provinces, seem to be doing better because their economies are less dependent on one sector. We have seen reasonable, but not strong, demand for talent in Vancouver, Regina, Winnipeg and Edmonton but remain cautious about the longer term impact of the loss of oil revenues. This could affect everyone as provincial tax coffers suffer and the ancillary businesses are hit.

Eagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”. There is a better mood in Ottawa and within the Federal Government (other than the morale issues caused by a non-functioning pay system) but that has not translated into a bunch of work, as we know the contracting process is long and arduous. There is an expectation that the Liberal government will get some projects back on the books, and there is optimism that a new agenda will lead to more business in the National Capital Region specifically. Montreal is relatively unchanged, not booming but a steady demand for resources, particularly in the financial and telecommunications sectors. The Maritime Provinces have traditionally had higher rates of unemployment and this is not changing much so work is tough to find.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time. That would include Program Managers, Project Managers andBusiness Analysts who always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for financial analysts, accountants with designations and public accounting experience plus controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA. Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand. This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

Summary:

The basic message is … more of the same! The oil patch continues to be in trouble with 2018 the latest target for a recovery of sorts. Statistics show there are jobs being added in Canada, but the numbers are not impressive particularly when you see how the US is doing.

Federal and provincial governments are talking about stimulus spending and infrastructure projects, so there is an expectation this will create some boost to the economy. If interest rates remain low, as expected, and the dollar remains fairly low, then we might also see some further growth in Canada’s relatively small manufacturing base.

With Canada’s overall unemployment rate at 6.8%, we can deduce that the unemployment rate for trades and skilled workers to be much lower, perhaps even approaching skill shortage levels. Even in these uncertain times we see shortages in niche skill areas.

There are definitely still opportunities created because of the demographic pressures (retiring Boomers) and the need for companies to remain competitive. We see opportunity in the construction industry, the financial sector, the telecommunications sector and the insurance sector. We see the markets with the greatest demand as being Toronto, Vancouver and perhaps Montreal. Ottawa is showing promise and could pick up if new projects are initiated by the new government. Government spending will also provide a boost to employment as the stimulus money becomes available.

That was my look at the Canadian job market for the first quarter in 2016 and some of its influences.

The first quarter of 2016 in Canada has been more of the same from last year. The economic hit in the oil patch has meant more layoffs, high paying jobs being replaced by lower paying jobs and a hit to the general economy. Changes in government have not had much impact on spending yet, although proposed “stimulus spending” is supposed to help (no commentary about our increased debt burden). We have also felt the lowered demand from foreign markets such as China as they have had their own economic issues to deal with. It has not all been doom and gloom as a weak dollar has helped some sectors such as manufacturing, plus it is still business as usual for other sectors like the services sector, retail, banking, construction and telecommunications.

The unemployment rate at the end of the first quarter was unchanged from year end 2015, at 7.1%. During the previous 12 months, Canada added 130,000 jobs which was 28,000 less than the 12 months up to last quarter. When you consider the US is adding 200,000 jobs every month, we should expect to be adding 20,000 a month to keep pace.

The stock market continues to be volatile. I focus on the TSX for this report and it hit a low of around 11,500 mid-January but has trended upwards since then, finishing the quarter at around 13,500. This was 500 points higher than it finished last quarter.

The oil patch continues to take a pounding, with sentiment pessimistic about a near term recovery. Many of our Calgary-based clients are now talking about 2018 as their expected recovery time, with the impact of layoffs still being felt. We enjoyed the highs of $100+ per barrel, followed by lows below $30. Currently we are seeing low $40 a barrel pricing with predictions suggesting high $40s by year end. The impact on the Calgary economy has been significant and will get worse as severance packages dry up, and the same can be said for other areas with heavy dependence upon the oil industry.

To be expected with our economy struggling, the Canadian dollar has also suffered. Since the beginning of 2015 we have seen highs around 85c US, and lows at 69c US. Currently the dollar sits at 78c US, which is not terrible but as always the currency is at the mercy of world events. The good news is that this helps the oil patch because they sell in US dollars and most costs are in Canadian dollars. It is also helpful to our manufacturing sector. Exporters will enjoy favorable pricing too; however, exports have been adversely affected by the economic woes of our trading partners like China.

The banking sector continues to be a big user of talent and one of the largest employers in Canada. The primary demand for talent is in Toronto and to a lesser degree Montreal. While the competitive nature of the industry requires investment in innovation, technology and responsiveness to regulatory change there is also a need to control costs. We have seen some fluctuation in demand as certain parts of the financial sector have been reducing staff while others have been hiring. The banks have taken advantage of the economy to restructure and become more efficient, which is prudent business practice but again tough for the economy right now.

The telecommunications companies are big employers in Canada and are also very cost conscious. While they demand the best talent in order to compete, they are also careful about keeping employment costs under control. Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce. The recent purchase of Wind by Shaw might increase competition and potentially open up opportunities should all of the regulatory approvals go through.

The US economy has been adding more than 200,000 jobs a month and in 2015 added 2.65 million jobs. This, in spite of the impact of a low oil price in their oil sector, has resulted in some skill shortages in certain areas. This may result in more Canadian skilled workers being lost from the Canadian economy but is an opportunity for individuals needing to find jobs.

The construction industry in Canada appears to remain healthy and despite the slowdown in the big jobs like the oil sands, there appears to be a constant demand caused by infrastructure upgrades in many of our cities. From cranes dotting the landscapes of our cities, through infrastructure work on our highways and home improvement projects everywhere the signs of an in-demand industry are plain to see. We hear that companies have benefitted from labour that was “freed up” due to lay-offs in the oil patch.

The Liberal government has been in place for about six months now and are beginning to make their presence known. We have seen tax increases and associated the benefit to the accounting firms as companies and high net worth individuals get more creative about reducing their tax burden. There are some expected government projects and infrastructure spending initiatives that should benefit the private sector. In addition, spending in some ministries will be reduced as others benefit from the new agenda. Some opportunities will be seen in sectors such as health, environment and education.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The latest score is for January and indicates a slight increase in demand for labour over December, and a similar increase over January in 2015. This indicator is an aggregate of hours for all classes of labour and so it is my expectation that the impact has been greater on unskilled labour and that skilled talent has a much lower unemployment rate.

Here at Eagle the big impact on our business has been the oil patch. Year-over-year the number of people applying for jobs has increased by about 7% and there was a 32% increase in job applicants over last quarter. Demand from our clients was down year-over-year, with 10% less orders in the first quarter of 2016. That demand was, however, 18.5% higher than the last quarter. This suggests to us that the people affected by the layoffs are now active in their job searches. We also believe that demand is recovering, although that seems to be happening in sectors outside of the oil patch.

More Specifically:

Toronto is the 5th largest city in North America with a population exceeding 6 million. The GTA (Greater Toronto Area) is home to the most head offices (almost 700) in Canada and most head office staff (around 75,000). Consequently it is also the hottest job market in Canada and generates about 60% of Eagle’s business. While it remains a busy market we have seen some impact from downsizing in large companies that has increased the availability of senior people in the market. Having said all that, if I were looking for work this is where I would like to be. The sectors that are always looking for people include the financial, insurance, government and telecommunications sectors in addition to the retail sector and the construction industry. There is also a fair amount of demand in the engineering and manufacturing space.

As already mentioned several times, in Western Canada it is Alberta, and more specifically Calgary as the “oil capital” of Canada, that has taken the brunt of the hit from the drop in oil prices. There have been numerous layoffs, and more are projected, with possibly another year before we see a recovery. These layoffs affect not just the oil companies but also the industries that serve them and the local economy gets affected in retail and housing specifically. The NDP government has done nothing to help boost confidence in Alberta for investors. It should not be forgotten that both Saskatchewan and British Columbia have an oil sector too, and while they have been equally hit those provinces, seem to be doing better because their economies are less dependent on one sector. We have seen reasonable, but not strong, demand for talent in Vancouver, Regina, Winnipeg and Edmonton but remain cautious about the longer term impact of the loss of oil revenues. This could affect everyone as provincial tax coffers suffer and the ancillary businesses are hit.

Eagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”. With the still relatively new Liberal government in place some projects that had been stalled have begun to move again, and there is optimism that a new agenda will lead to more business in the National Capital Region specifically. Montreal is relatively unchanged, not booming but a steady demand for resources, particularly in the financial and telecommunications sectors. The Maritime Provinces have traditionally had higher rates of unemployment and this is not changing much so work is tough to find.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time. That would include Program Managers, Project Managers and Business Analysts who always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for financial analysts, accountants with designations and public accounting experience plus controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA. Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand. This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

Summary:

There had been hope that 2016 would see the start of a turnaround in the oil patch, but that seems to be a moving target, with 2018 seeming like a more realistic time line. The country is adding jobs, but the concern is that we have lost so many high paying jobs in the oil sector it is likely we are replacing them with lower skilled and lower salaried jobs.

Federal and provincial governments are talking about stimulus spending and infrastructure projects, so there is an expectation this will create some boost to the economy. If interest rates remain low, as expected, and the dollar remains fairly low, then we might also see some further growth in Canada’s relatively small manufacturing base.

With Canada’s unemployment rate at 7.1%, we expect the unemployment rate for trades and skilled workers to be much lower. Even in these uncertain times we see shortages in niche skill areas.

There are definitely still opportunities created because of the demographic pressures (retiring Boomers) and the need for companies to remain competitive. We see opportunity in the construction industry, the financial sector, the telecommunications sector and the insurance sector. We see the markets with the greatest demand as being Toronto, Vancouver and perhaps Montreal. Ottawa is showing promise and could pick up if new projects are initiated by the new government. Edmonton is anxious because a large part of its business is tied to the provincial government and tax revenues are down significantly due to the oil crisis. The Conference Board, however, is suggesting that even Alberta will see GDP growth in 2016, with all provinces experiencing some modest growth. Government spending will also provide a boost to employment as the stimulus money becomes available.

That was my look at the Canadian job market for the first quarter in 2016 and some of its influences.

2015 was a tough year in Canada, with GDP contracting for each of the first two quarters, Canada suffered a “technical recession”, and many businesses felt it! The primary reason for the malaise was the impact on the oil sector caused by a low price per barrel. Other impacts through the year have been the economic meltdown in China, which is a large consumer of Canadian raw materials, and of late the low Canadian dollar although that does help our beleaguered oil sector.

The unemployment rate at year end was 7.1%, which was 0.4% worse than 12months ago. Over the course of 2015 Canada added about 158,000 jobs with about 18,010,000 employed.

The stock market was extremely volatile in 2015 experiencing a steady decline since about April. One indicator that I follow for this report is the TSX which was at a high of about 15,500 in April and ended the year at around 13,000 but has actually declined another 1,000 since then.

As already mentioned the price of a barrel of oil has been a big factor in our tough economy and it does not look like it is getting better in the short term. From its highs of well over $100 a barrel we are currently seeing sub $30 prices. The impact in the oil patch has been layoffs, and more are expected with rates at this level.

To be expected with our economy struggling, the Canadian dollar has also been suffered. The 2015 high saw the Canadian dollar fetch about 83c US, and by the end of the year we were around 70c US. Since then we have dipped below 70c! The good news is that this helps the oil patch because they sell in US dollars and most costs are in Canadian dollars. It is also helpful to our manufacturing sector, however that sector has been severely depleted over the years when the dollar was stronger so I don’t expect that much impact for Canada. Given that our exporters have also been hit by the slowdown in China another expected area of benefit is reduced.

The banking sector continues to be a big user of talent and one of the largest employers in Canada. The primary demand for talent is in Toronto, but there is also demand in Montreal. While the competitive nature of the industry requires investment in innovation, technology and responsiveness to regulatory change there is also a need to control costs. We have seen some fluctuation in demand as certain parts of the financial sector have been reducing staff while others have been hiring. The banks have taken advantage of the economy to restructure and become more efficient, which is prudent business practice but again tough for the economy right now.The telecommunications companies are big employers in Canada and are also very cost conscious. While they demand the best talent in order to compete, they are also careful about keeping employment costs under control. Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce. The recent purchase of Wind by Shaw might increase competition and potentially open up opportunities should all of the regulatory approvals go through.

The US economy has been adding more than 200,000 jobs a month and in 2015 added 2.65 million jobs. This, in spite of the impact of a low oil price in their oil sector, has resulted in some skill shortages in certain areas. This may result in more Canadian skilled workers being lost from the Canadian economy but is an opportunity for individuals needing to find jobs.

The construction industry in Canada appears to remain healthy and despite the slowdown in the big jobs like the oil sands, there appears to be a constant demand caused by infrastructure upgrades in many of our cities. From cranes dotting the landscapes of our cities, through infrastructure work on our highways and home improvement projects everywhere the signs of an in-demand industry are plain to see.

The Federal election saw a change in government which will have an impact on Canada’s economy. In the short term, tax increases and rhetoric from a left leaning government has caused some loss in confidence and willingness to invest. In the longer term I expect that as the government begins to implement its agenda it will create opportunities in various sectors such as Health, environment and education.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The latest score suggests a continued slowdown in demand for labor in 2015, ending the year down slightly over 2014. This indicator is an aggregate of hours for all classes of labor and so it is my expectation that the impact has been greater on unskilled labor and that skilled talent has a much lower unemployment rate.

Here at Eagle the big impact on our business has been the impact on the oil patch. Year over year the number of people applying for jobs has been relatively consistent, but there was a decline of 22.5% in demand from our clients in 2015, almost exclusively attributed to the Calgary market

More Specifically:

The GTA (Greater Toronto Area) is the hottest job market in Canada and generates about 60% of Eagle’s business. While it remains a busy market we have seen some impact from downsizing in large companies that has increased the availability of senior people in the market. Having said all that, if I were looking for work this is where I would like to be. The sectors that are always looking for people include the financial, insurance, government and telecommunications sectors in addition to the retail sector and the construction industry. There is also a fair amount of demand in the engineering and manufacturing space.

As already mentioned several times, in Western Canada it is Alberta, and more specifically Calgary as the “oil capital” of Canada, that has taken the brunt of the hit from the drop in oil prices. All of the major oil companies are headquartered in Calgary and cost cutting has resulted in many layoffs, with many more projected in the first half of 2016. These layoffs affect not just the oil companies but also the industries that serve them such as technology, services, engineering and transportation companies. The uncertainty facing the oil patch from the relatively new NDP government has reduced confidence and future investment is also at risk. The “oil sector bust” will pass but it remains to be seen whether investment will remain in Alberta bringing back the jobs that have been lost to date. Elsewhere the impact has not been as bad, with Vancouver, Regina and Edmonton still in need of talent but nervous about the longer term impact of the loss of oil revenues. This could affect everyone as provincial tax coffers suffer and the ancillary businesses are hit.

Eagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”. With a new federal government in place some projects that had been stalled have begun to move again, and there is optimism that a new agenda will lead to more business in the National Capital Region specifically. Montreal is relatively unchanged, not booming but a steady demand for resources particularly in the financial and telecommunications sectors. The Maritime Provinces have traditionally had higher rates of unemployment and this is not changing much so work is tough to find.

The Hot Client Demand.
At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time. That would include Program Managers, Project Managers and Business Analysts who always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting, side we see a consistent need for financial analysts, accountants with designations and public accounting experience plus controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA. Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

Summary:

Canada has been weathering somewhat of a storm, and if the oil industry picks up through 2016 then we should be in reasonable shape. We are adding jobs, and the bigger impact of the downturn have been very regionalised, which has been bad news for Alberta but certainly some people are finding jobs in other geographies and sectors. Relatively new governments in Alberta and at the Federal level could mean new policies that will create opportunities. One question will be how much business confidence is affected by the new agendas of these governments.

While Alberta has suffered most, with recession-like symptoms, the rest of Canada endured a technical recession for the first half of the year but the second half saw some growth, and 2016 is expected to be better. Canada’s unemployment rate is at 7.1% which is not great, but the unemployment rate for skilled workers will be far lower. Even in these uncertain times we see shortages in niche skill areas.

There are definitely still opportunities created because of the demographic pressures (retiring Boomers) and the need for companies to remain competitive. We see opportunity in the construction industry, the financial sector, the telecommunications sector and the Insurance sector. We see the markets with the greatest demand as being Toronto, Vancouver and perhaps Montreal. Ottawa is showing promise and could pick up if new projects are initiated by the new government. Edmonton is anxious because a large part of its business is tied to the provincial government and tax revenues are down significantly due to the oil crisis. The Conference Board however is suggesting that even Alberta will see GDP growth in 2016, with all provinces experiencing some modest growth.

The unemployment rate at 7.1% could be easily reduced with some positive news on the oil front and some positive moves by the governments (Federal and Provincial) in power. If that happens we could quickly move back to a full employment situation and start to run up against the different issue of finding enough people! Of course my crystal ball is about as good as anyone else’s, so we will wait and see how the economy unfolds over the balance of the year.

That was my look at the Canadian job market for 2015 and some of its influences, with a view to how it might affect employment in 2016.

The following were the most popular blog entries from the last year. If you missed any of them then now is an opportunity to catch up!

Surviving a Downturn (in Alberta?). This was a “reprint” of advice from Tom Peters just before the last recession. It seemed topical back in January as oil prices plummeted and jobs were being cut in the oil patch. Unfortunately things are not better yet!

“You buck yourself up with the thought that “this too shall pass”—but then remind yourself that it might not pass anytime soon, so you re-dedicate yourself to making the absolute best of what you have now.” Tom Peters

Independent Contractor Myths & Realities in CANADA! The Canadian Federal regulations around independent contractors have not changed in thirty years, despite the changing nature of work. Too often I see “experts” pontificating about the risks of using contractors without a real understanding of the subject. There are many benefits to companies using independent contractors and so this blog was focused on presenting the facts!

“Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others.” Ayn Rand

Attitude Matters … A Little Humility is a Good Thing! This was a reminder that no matter how good we are, or think we are, it can always change! It does not cost anything to be a little humble, and it will help with relationships that could be important to you at some point in the future. Also includes 13 rules from General Colin Powell.

“Nothing can stop the man with the right mental attitude from achieving his goal; noting on earth can help the man with the wrong mental attitude.” W. W. Ziege

Email Etiquette – 20 Tips! Email is such a big part of our lives that everybody should be aware of the basics of email etiquette. Some of it is good manners, some of it is common sense and some of it is good time management … hope it helps!

“Surround yourself only with people who are going to lift you higher.” Oprah Winfrey

10 Thoughts About Measuring Success? For many people success is defined by money or position, but that is narrow thinking. Success should be personal, not necessarily what others consider success. YOU need to decide what success looks like for you.

“The challenge of leadership is to be strong, but not rude; be kind, but not weak; be bold, but not bully; be thoughtful, but not lazy; be humble, but not timid; be proud, but not arrogant; have humor, but without folly.” Jim Rohn

Credibility is a big word … and some people seem to have trouble understanding it.

Credibility is earned … not given.

When you have credibility THEN the world opens up for you.

Until you EARN that credibility, you really need to be very focused on just that!

Whether you are an entry level person, a manager, an executive OR even a company … it is the same thing.

You EARN credibility by delivering, by doing the job and by demonstrating your capabilities.

You do NOT earn credibility based on what you did at a previous job, what you did last year or because you talk a good game.

For most of us that means working just a little harder, maybe even a little longer and doing just a little more than everyone else … because you need to differentiate yourself and demonstrate your worth.

If you are really focused on success you will never stop doing a little more! Until you have credibility you don’t have the luxury of making that choice!

From time to time governments will decide that they need to crack down on independent contractors. Typically the suggestion is that independent contractors are paying less in taxes than they should, or that they are really employees. During the run up to the recent federal election Justin Trudeau made some references to small business owners avoiding taxes, and hopefully he does some research before he buys into a rhetoric that believes every worker should be an employee of a large entity.

Here are some things you might not have known about independent contractors in the professional space in Canada . It is very important to remember that Canadian laws are different than US laws., because too often I see “experts” weighing in with advice, based on their US experience.

Taxation … contractors pay the same amount in taxes as everyone else.

An independent contractor in Canada is typically a one person corporation. Her corporation gets paid for the work done and the contractor either (a) takes a dividend from the corporation as opposed to a salary, or (b) pays themselves a salary. The dividend route only provide a small tax advantage (by way of deferring taxes) IF she leaves some of the earnings in the company. If, like 99% of Canadians she spends what she earns then she pays pretty much the same amount of tax as everyone else. If she doesn’t spend every penny then she might defer tax … but she still pays it!

Expenses … yes the independent contractor gets to write off SOME business expenses.

These are typically minimal, AND if they worked for “big company” then it would be “big company” writing off the expenses. So, the write offs would have occurred anyway. These are the expenses associated with taking responsibility for a business … marketing, technology, professional services and other necessary business costs. All of these costs go back into our economy supporting other businesses. and creating jobs.

Risk … independent contractors accept some risks, like any business.

An independent contractor is a business, and as such accepts some risks as it is a lifestyle they choose. They have no guarantees of long term work they are responsible for finding every gig themselves, in strong or weak economies. They can be let go at a moment’s notice, with no severance. If their work is not accepted they don’t get paid. They need to carry business insurance because they can be sued by their client. They accept the risk of their and their family’s health, with no big company benefits. They don’t get paid for time off, vacations, sick days or training time.

Value to the economy … they are a big boon to Canada’s economy.

Having a flexible workforce is HUGE for all companies, and essential to many! Special projects, seasonal demands or the ability to pilot new ideas without committing to long term employment contracts are essential for these companies. Having rare expertise available to many companies, rather than just one employer, is a big advantage to Canada’s economy and the average self-employed individual is very motivated to be productive … their continued contract depends on it.

It is worth noting that some percentage of independent contractors have aspirations for a bigger corporate entity. They might be developing a product on the side, or they might band together with a few others to create a company. There are many success stories where one or a few contractors formed a company that became a household name. Some names that come to mind might include CGI, Calian and Cognos but I’m sure there are many. Entrepreneurs will often start small and go on to bigger things.

The New Way of Work … this is a growing trend in society today

Whether to become self-employed has always been a personal choice. It offers the individual more control over their career, the ability to earn a good income without having to move into management when they are more interested in a specialised career. It allows for freedom to take time off for whatever reason. These people choose to manage their own retirement plans. They have to find their own benefits and accept the responsibility of business ownership.

I guess Ronald Reagan might have been right when he said, “You can’t be for big government, big taxes, and big bureaucracy and still be for the little guy.”

It would be my wish that all elected officials understand the realities of employment today and understand the value of these small business owners. These are valuable contributors to Canada’s economy and messing with that is not going to help anyone! It certainly won’t put more tax dollars into the coffers!

“Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others. ” Ayn Rand

In the recruiting business we are constantly looking for great people to meet the needs of our clients.

When your job entails looking at hundreds and thousands of resumes it can be easy to get a little cynical. Our job is to sort through the large numbers of resumes and weed out those that are not a fit. Just some of the things that will influence us as we go about this task are inconsistencies in resumes, unexplained gaps in experience, inconsistencies in write-ups from one job to another, poor grammar and spelling mistakes.

We see generic resumes submitted on multiple different roles. If we are looking for a project manager then we will be looking for project management experience in the resume, a focus on project management in the candidate’s more recent experiences and in any overview. If the focus of the resume is anything else then that candidate is likely not going to be considered for a project management role, even though they might have relevant experience.

We look for experience we would expect for a given role and when we don’t see it we are left wondering if the person really is qualified. If someone is applying for a technical role that would suggest several different types of skills, we want to see all of those skills on the resume. Often candidates assume that because they have a certain role on their resume that all of the requisite skills to do that role are assumed … never assume!

We sometimes see write-ups that look very familiar, and references that are the same as many other resumes. We have seen a type of fraud where groups of individuals, typically from the same origins, get together and provide references for each other and their resumes are almost word for word the same! Obviously we stay away from these people.

“Quality is never an accident. It is always the result of intelligent effort.” John Ruskin

We have very little time to respond to our clients with qualified candidates so we will always prefer to work with people we know. That might be people we have worked with before, people we have met and interviewed or people that are referred by trusted sources.

Candidates applying for jobs may wonder why they have difficulty getting considered by recruiters and may assume that recruiters are just not competent, perhaps they are rude or maybe they are playing favorites. The reality is that they operate in a very fast paced environment and for you to be considered seriously you need to help yourself.

“There are no shortcuts to any place worth going.” Beverly Sills

Here are 5 thoughts for people looking to get the attention of recruiters:

Make sure your resume is a true reflection of the job you are applying for;

Put significant effort into the content … this is a “selling document” and needs to convince the recruiter that you are someone worth considering.

Make sure you have no spelling or grammatical errors in your resume. Get help if necessary.

Make the recruiters job easy. If the advertised role asks for specific skills (2 years of Java development etc) then point out specifically where you have the experience, and make sure it is clear in your resume.

Try to develop a rapport with a few recruiters. Getting interviewed and providing references BEFORE they have a job you want will enhance your chances.

“If you want to earn a certain amount of money, develop yourself into the person who is worth being paid that amount of money.” Idowu Koyenikan—————————————————————————————————————————————–Kevin Dee is Chairman and founder of Eagle (a Professional Staffing Company)Want to know where Canada’s hot jobs are? Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
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This has been a tough year thus far in Canada. With GDP contracting for each of the first two quarters, Canada suffered a “technical recession”, and many businesses felt it! The primary reason for the malaise has been the impact on the oil sector caused by a low price per barrel. Another impact has been the economic meltdown in China, which is a large consumer of Canadian raw materials.

The employment rate at the end of Q3 dipped to 7.1%, from 6.8% in Q2. This was attributed to more people entering the workforce, but still means a lot of people looking for work. Canada added about 31,000 jobs in Q3 and has added 161,000 in the 12 months to September. This is down from the 176,000 jobs over the 12 months to June.

As another economic indicator the TSX has been fairly volatile. At the end of Q3 the TSX was at about 13,300 which was down about 1,200 points from the 14,500 reading at the end of Q2.

As already mentioned the price of a barrel of oil has plummeted and is currently sitting around $50 a barrel. The price has fluctuated significantly having reached lows near $40 a barrel during Q3 but was at $55 at the end of Q2. There is no relief in sight for the oil companies yet meaning continuing cut backs, reduction in spending and layoffs.

The Canadian dollar has also been suffering and at the end of Q2 a Canadian dollar was worth less than 75c US, compared to 80c at the end of Q2. This is not ALL bad news, and Canadian manufacturers and exporters are benefiting, however travel is costly as is importing materials.

The banking sector continues to be a big user of talent and one of the largest employers in Canada. The primary demand for talent is in Toronto, but there is also demand in Montreal. While the competitive nature of the industry requires investment in innovation, technology and responsiveness to regulatory change there is also a need to control costs. We have seen some fluctuation in demand as certain parts of the financial sector have been reducing staff while others have been hiring.

The telecommunications companies are big employers in Canada and are also very cost conscious. While they demand the best talent in order to compete, they are also careful about keeping employment costs under control. Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

A recent US report cites labor shortages in the US construction industry and I have no doubt we will see the same here in Canada. It is an industry that is in demand, and other than the current “hiccups” in the oil sector, which will pass, there will be a constant demand into the future. From cranes dotting the landscapes of our cities, through infrastructure work on our highways and home improvement projects everywhere the signs of an in-demand industry are plain to see.

The upcoming Federal election has the usual effect of dampening demand for resources, as projects are put on hold to ensure they are still the mandate of the new administration. Governments everywhere are being very careful with their spending however there is always some demand, whether it is at the Federal, Provincial or Municipal level. They are huge employers, and people with the right skills are generally always in demand. Regulatory change, policy development and general administrative needs dictate the need for a large and skilled workforce that receives competitive incomes and very attractive pensions and benefits. I would expect to see a slowdown in this sector that will depend upon whether there is a change in government, and might last from 3 to 6 months. The newish Alberta government has not yet ramped up its new projects, but it is expected that work will be generated as they change the focus of the administration. Having said all of the above, one area of demand is in the transportation space where governments are making investments across the country, thus creating job opportunities.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The latest score suggests a continued slowdown in demand for talent in Q3. I would expect an increase in demand for staff augmentation resources in Q4 as we recover from the “technical recession”.Here at Eagle we continue to see significant impact on our Western Canada business however other markets remain fairly steady. Year over year the number of orders received has dropped about 20%, which can largely be attributed to the oil patch. Other markets have been relatively consistent across the country.

More Specifically:

The GTA (Greater Toronto Area) is by far Canada’s, and Eagle’s, largest market. The sheer size of the population and the fact that it contains the most head offices makes it a large consumer of talent and as such, the best place to be looking for work. This market accounts for approximately 60% of Eagle’s business which comes from the major industries here, which include the financial, insurance, government and telecommunications sectors. The retail sector and the construction industry also generate significant demand, in addition to the engineering space. Despite a technical recession the GTA continues to demand talent.

In Western Canada Alberta, and more specifically Calgary as the “oil capital” of Canada, has taken the brunt of the hit from the drop in oil prices. All of the major oil companies have their Canadian head office in Calgary and cost cutting has resulted in many layoffs. The “anti-oil” stance of the relatively new NDP government has done nothing to help matters. If investment in Alberta is not going to be valued then these companies can invest elsewhere. The “oil sector bust” will pass but it remains to be seen whether investment will remain in Alberta bringing back the jobs that have been lost to date. Elsewhere the impact has not been as bad, with Vancouver, Regina and Edmonton still in need of talent.

Eagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”. The impact of the upcoming Federal election will be felt in Ottawa for a few months, resulting in a slowdown in demand. Montreal is relatively steady but not booming, with demand coming from the financial sector, the telecommunication companies and the construction industry. The Maritime Provinces typically have higher unemployment rates ranging from 8.8% in Nova Scotia to 13.6% in Newfoundland, and this region remains a tough place to find work.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time. That would include Program Managers, Project Managers and Business Analysts who always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting, side we see a consistent need for financial analysts, accountants with designations and public accounting experience plus controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA. Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand

Summary:

“If all the economists were laid end to end, they would not reach a conclusion.”

The third quarter of 2015 has been “more of the same”, with the economy severely affected by the oil sector and corporate concern about the political climate. An NDP government in Alberta and an upcoming election that has the potential to bring a left leaning Federal government is not going to result in good news to corporate Canada. There is no timeline on when oil will recover, nor what the recovery will look like, and until the election is done we will not know the impact on business.

While Alberta has suffered most, with recession-like symptoms, the rest of Canada has also endured a technical recession for the first two quarters with the result Canada’s unemployment rate is at 7.1% the worst it has been all year.

Despite all of that, there are still opportunities created because of the demographic pressures (retiring Boomers) and the need for companies to remain competitive. We see opportunity in the construction industry, the financial sector, the telecommunications sector and the Insurance sector. We see the markets with the greatest demand as being Toronto, Vancouver and perhaps Montreal. Other markets that should improve after the election might be Ottawa and Edmonton which should see some increase in government spending as new programs roll out.

While we don’t expect to see labor shortages in the near term (at least until the oil sector recovers) we do see skills shortages particularly in the knowledge economy and the trades.

The unemployment rate at 7.1% could be easily reduced with some positive news on the oil front and some positive moves by the governments (Federal and Provincial) in power. If that happens we could quickly move back to a full employment situation and start to run up against the different issue of finding enough people! Of course my crystal ball is about as good as anyone else’s, so we will wait and see how the economy unfolds over the balance of the year and into 2016.

“I always avoid prophesying beforehand because it is much better to prophesy after the event has already taken place. “

Winston Churchill

That was my quarterly look at the Canadian job market and some of its influences.

Every company wants, and needs, to attract the best people that it can.

Good companies will invest in those people, empower them and hold them accountable for their performance. As time goes by it becomes evident which of the people are top performers, which people are performing at an acceptable level and also the people who are not performing become identified.

“Hire people who are better than you are, then leave them to get on with it. Look for people who will aim for the remarkable, who will not settle for the routine.” David Ogilvy

There are lots of reasons why people don’t perform, ranging from attitude problems to lack of training or skills, to the fact that they are just in the wrong job.

Managers will inevitably find themselves spending a significant amount of their time on people management, dealing with the non-performers and their various personnel issues.

Good companies will work with these people to try and fix the situation, and sometimes things turn around and sometimes they don’t.

It is important to both company and employee to resolve these situations quickly, so both can find the right solution moving forward. If someone is in the wrong job, it is far better that they move on and find a place where they can succeed. It is also a huge bonus for a manager, and consequently the company, to replace a “problem employee” with a top performer!

“Often the best solution to a management problem is the right person.” Edwin Booz

In today’s world of skills shortages it is tough to find those top performers, so when opportunity arises it is smart to take advantage.

Some thoughts:

You need to act quickly to manage non-performers out, unless they are working hard to fix things, or you are doing no-one any favors.

Don’t try to keep marginal performers who choose to leave … there is always a better option out there.

Hiring and firing decisions are business decisions, not “popularity contests”, don’t hire or fire JUST because you like or dislike someone.

Any time you upgrade your team (replace lower performer with higher performer) you are magnifying the positive impact on your business because it also increases management efficiency.

A positive improvement to a team will also have a positive impact on the rest of the team. People know when others are not pulling their weight.

“Get the right people on the bus and the wrong people off the bus.” Jim Collins

So, take advantage of market conditions and other opportunities that allow you to improve your team. Expect a short term impact, but as long as you are upgrading the benefits will be huge!

“If you think it’s expensive to hire a professional to do the job, wait until you hire an amateur.” Red Adair

Final (slightly self-serving) thought … the price of professional help in finding those great people is a very small price to pay, so work with your friendly staffing company!

Wikipedia describes curiosity as: (from Latin curiosus “careful, diligent, curious,” akin to cura “care”) is a quality related to inquisitive thinking such as exploration, investigation, and learning, evident by observation in human and animal species. Curiosity is heavily associated with all aspects of human development, in which derives the process of learning and desire to acquire knowledge and skill.

I would suggest that curiosity is an under-rated trait that is present in almost any successful person that I know!

“Judge a man by his questions rather than by his answers.” Voltaire

This is one “skill” that can be developed … and can be hugely useful in both your career and your personal life.

For example, it is a strongly held belief that great leaders do not accept the “status quo”. They are continually looking for ways to get better, to improve the process, to reduce the costs and to be more efficient. A great way to do that is to be curious, and to truly understand why things are the way they are, because when you understand it well you have a decent chance of improving it!

“It is important to remember that we cannot become what we need to be by remaining what we are.” Max De Pree

Let’s talk about relationships, both business and personal. The number one way to start a relationship is to be curious about the other person! By asking questions we get to know people better, and conversation flows easier leading to an easier relationship which might develop into friendship. So, whether you are networking for business or meeting socially … being curious is a great way to “get ahead”!

“You can make more friends in two months by being interested in other people than in two years of trying to get people interested in you.” Dale Carnegie

Work at it!

Consciously start to ask more questions.

Work at developing better questions.

Set yourself a goal to learn something new every day … by asking questions.

If you are hiring people, look for those who are curious … they will WANT to learn!